Are You Finance Savvy?

Debt, credit lines, you name it equals zero in my books. My rule is to not live beyond my means and budget spending based on needs vs wants. If this word sounds foreign to you then you are in for a real shocker. I'm amazed at the number of people I have met who are students and even adults who buy everything and anything without thinking of the consequences such as debt or credit score.

Credit cards have become a way of life for many as they are extremely easy to use and many offer reward programs. However, many forget to make minimum payments, miss some or don't even make any for that matter and end up ruining their credit score. When it comes to credit scores, credit cards and bills actually play a hand in it. Poor decisions made when you're younger could possibly prove costly after you graduate when you're trying to buy a house in a new city because of a new job or get a loan. Don't get carless with your finances. It's easy to make mistakes but don't let it ruin your life. Remember to pay your credit card balance full every month on time or not miss a payment.

As a former student, my one piece of advice while I may have not done this but seen others do, is to not sign up for a bunch of credit cards in university simply because they may offer you a discount. The limit those cards hold will be put against you in terms of credit even if they aren't used. So to make sure this doesn't happen, don't simply take a pair of scissors to them but call your credit card company along with your national credit bureau (Equifax and TransUnion are the Canadian ones) to make sure it is noted that you requested your credit cards to be canceled.

So if you do rack up a large amount of debt from credit cards to student loans, don't be afraid to seek help from a credit counselor. Bad credit will follow you like a shadow and you seriously don't want that!

Young people now days have a skewed image in regards to what they spend, they have the 'live for the moment' mindset which is great but not for their finances. They need to learn to spend money on what they can afford now, save and avoid credit card debt! 

{Apartment Therapy}

To avoid all the unnecessary spending, a great way to budget is to keep a spending journal whether it be in an excel spreadsheet or on your iPhone using an app. You must first figure out what are needs and wants in your life. Those really cute shoes at the store may look enticing right now but if you have another pair at home that look the same, you can hold off. Budgeting doesn't take too long if you are willing to sit down and analyse your income to see where you are doing most of your spending

A savings plan is another great option. A tax free savings account that automatically takes a monthly amount from your checking account is good because since you no longer see the money, you are no longer tempted to touch it.

Once you embrace the lifestyle of tracking your spending, educating yourself on money, credit cards and savings. You are set, just remember to not live beyond your means!